Ventures for valley, in valley

It's a common business advertising tagline: "Locally owned and operated since ..."

Does it mean anything?

Absolutely, said Ted Wiens Jr., owner of a dozen tire and automotive repair shops in Las Vegas.

It signifies commitment to the community, pride in ownership and a reputation backed by years of service, he said.

"People are proud of it after a while," Wiens said. "I grew up and went through school here and we started with one gas station in 1948. I've never thought of it any other way. I've never wanted to branch out. We've got more than enough business in Las Vegas."

The importance of local companies to the Las Vegas economy has become acutely apparent in the current economic downturn, observers say. The city can no longer depend on gamblers and tourists to carry the load, especially as the downturn puts the clamps on leisure travel and consumer spending.

Visitor volume is off 1.1 percent from a year ago, gaming revenue is down 9.4 percent and passenger traffic through McCarran International Airport has declined by 4 percent. Hotel occupancy has dipped below 90 percent and room rates have been discounted 10 percent.

It's during these difficult times that people begin to realize the value of locally owned companies, said Jeff Harris, president of 30-year-old Nevada Title Co. They bring both tangible and subtle benefits to Southern Nevada's evolving business community.

Harris said he's been on both sides of the corporate fence, having worked for Chicago Title, and the biggest difference is that all of the business from a locally owned company stays in Las Vegas.

"We don't send anything out of state," he said. "We use local vendors, local suppliers, local lawyers. It's all about Nevada and helping the state grow. It's also about helping charitable organizations such as Nevada Cancer Institute and Boy Scouts and Habitat for Humanity."

The multiplier effect of each dollar circulating through the local economy is far greater than its face value, Harris said. These dollars are a fundamental component of healthy long-term economic growth and stability.

The Las Vegas Chamber of Commerce and Nevada Development Authority have validated these points with research. Those agencies have preached about the need to diversify the Las Vegas economy for years.

"The NDA was put together by a group that wanted Southern Nevada to be known for something other than tourism and gaming," Wiens said. "I remember they brought in Levi's in Henderson 25 years ago."

Las Vegas has seeded a number of homegrown companies that have succeeded so much that they're now being courted by other states, said Somer Hollingsworth, president and chief executive of the Nevada Development Authority. His job is to not only attract new business, but retain existing ones.

Hollingsworth said he hears all the time about how unfair it is that out-of-state companies are given sales and use tax abatements, property tax abatements, training dollars and other incentives to move to Nevada, while local companies get shut out.

"One of the things we do that people don't know, if you're a local company, we can take you up (to Carson City) and get the same incentives, if you qualify," Hollingsworth said. "It's so much easier and so much cheaper to work with local companies and help them expand than to get new business.

"The other side of the coin is we want local companies to stay here and not go anywhere else," he added. "Local companies are vitally important to us. Their ability to expand and grow is as important as bringing in someone from the outside."

Diane Fearon, president and chief executive officer of Bank of George, said local business executives have a distinct advantage of knowing and understanding the community when making business decisions.

The community bank, founded in 2007, has 183 shareholders and a board of directors that has stock in both the bank and in Las Vegas, she said. A couple of people involved in the bank are physicians, which gives the bank expertise in working with the medical profession.

Todd Nigro of Nigro Development and Troy Nelson of Mojave Electric provide insight into the real estate and construction industries. Mandalay Resorts President and Chief Operating Officer William Hornbuckle brings gaming experience to the board.

Bank of George contributes to the community's overall well-being by providing needed capital, from loans of $200,000 to $3 million, Fearon said. The bank also provides employment for about 25 people.

"There are so many other businesses that gaming and hospitality touch. Those are small- to medium-size businesses that are ideal customers for Bank of George," she said. "Hospitality is the major force, but there are so many other customers that support the business and population of the valley. They will generally have annual sales of $2 million to $50 million."

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.